Firm loses challenge of contract

A federal court has thrown out Kerr Contractors’ challenge of a contract awarded to a competitor. The Woodburn-based contractor took the Army Corps of Engineers to court to protest the Corps’ decision to award a Tillamook jetty job to Kiewit Pacific.

U.S. Court of Federal Claims Judge Lynn Bush dismissed Kerr’s complaint Tuesday and ordered both sides – and Kiewit, which joined the case – to pay their own court costs. Bush sealed her opinion and order to prevent trade secrets from leaking.

Brent Kerr, the president of Kerr Contractors, said he understood he might not prevail but he’s still disappointed. “It’s hard to win a bid protest, especially in the federal courts,” he said.

“I’m frustrated in the results, but there’s nothing I can do about that now,” Kerr said.

Kerr had claimed that the corps’ selection process for the Tillamook North Jetty Capping Project, which involves placing 40-ton stones at the end of the jetty, was unfair. The corps judged Kerr Contractors’ proposal technically unacceptable and selected Kiewit.

Corps spokesman Matt Rabe said Bush’s decision validated the fairness of the selection process. “That’s the great thing about our court system, that companies and individuals can bring things to the table and have an arbiter render this decision,” he said.

“We’re pleased that the judge saw that we did this properly.”

Brent Kerr said he’d like to see the whole system changed to add more checks as proposals are considered, instead of after a contract has been awarded. “A federal agency really needs to have this process reviewed by some sort of watchdog group,” he said.

“It’s a waste of taxpayers’ money, what they’re doing.”

The project is part of the federal stimulus package. Rabe said the government has invested in the Tillamook jetties to keep the Tillamook Bay safe for watercraft.

“We recognize it’s important not only to protect the federal investment but also to local boaters who … need a reliable channel,” Rabe said. “So we’re pleased to provide them that.”

The delay shouldn’t affect the overall project schedule, Rabe said. The corps awarded the Kiewit the contract on July 31, then told Kiewit to wait out the legal process before getting started.

Kiewit should begin placing stones next summer, Rabe said, and finish by fall.

A Kiewit spokesman did not return calls seeking comment by press time Thursday.